There are varying thoughts about giving gift cards as gifts. Some people think there is not enough thought given when purchasing gift cards. But if you can purchase gift cards for a store or restaurant that you know the recipient is interested in it could be a better gift, they can use it to buy something they want. Also, if they get multiple cards from different people they can possibly purchase something more expensive that they would not normally be able to purchase.
If you do give giftcards, it may be possible to combine them with other items to make a gift basket instead of just the card. Some examples are bookmarks with a giftcard from a bookstore or coffee mug, cookies with a coffee gift card.
Here are some ideas for packaging gift cards and other gift wrapping ideas. One idea is to make a snow globe from a jar. One note mentioned in the post is that if you put a gift card in a jar like this, to not leave in the water for longer than a week. They tested a gift card after a week and it still worked but did not recommend to leave it in the water for much longer than a week.